Japan: postal privatisation
From April, the big “four” providers of international express and delivery services will face a formidable new upstart in the Japanese market: Japan Post.
But the question is whether Japan Post can compete head-to-head against the established express mail and logistics providers. FedEx, DHL and UPS all enjoy global economies of scale that they have built up over decades. Though Japan Post has unparalleled domestic mail delivery operations, the move will mark its first foray into the international express delivery market. Until now, the “big four” providers – United Parcel Service (UPS), Federal Express (FedEx), DHL of Germany and TNT of the Netherlands – have dominated the Japanese market, with an estimated 70 per cent market share. Minoru Hasegawa, the manager of Japan Post’s business development division, says it is essential for the entity to expand its services as part of its privatisation process.
